Krugman is right - albeit for the wrong reasons

The President Surrenders

By PAUL KRUGMAN

Published: July 31, 2011

A deal to raise the federal debt ceiling is in the works. If it goes through, many commentators will declare that disaster was avoided. But they will be wrong. 
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Comment: Of course, disaster is waiting after the debt deal is done. It is no pleasure to bring down debt. Yet the pain now must be accepted in order to avoid more pain later. Keynesians like to deny the truth of this law of sacrifice. In fact, following the wrong recipes has brought us into the painful dilemma with which we are confronted now. Had Congress not raised the debt limit years ago, the choice would have been "little pain now, for great gain later". Now the choice is: "A lot of pain now in order to avoid a much larger pain later."